Trump Axes a Stricken World Order – But There’s Opportunity Amidst the Turmoil
Trump’s actions were neither ‘spur of the moment’, nor whimsical. The ‘tariff solution’ had been pre-prepared by his team over years.
The Trump ‘shock’ – his ‘de-centring’ of America from serving as pivot to the post-war ‘order’ via the dollar – has triggered a deep cleavage between those who gained huge benefit from the status quo, on the one hand; and on the other, the MAGA faction who have come to regard the status quo as inimical – even an existential threat – to U.S. interests. The sides have descended into bitter, accusatory polarisation.
It is one of the ironies of the moment that President Trump and right-wing Republicans have insisted on decrying – as a “resource curse” – the benefits of the Reserve Currency status that precisely brought the U.S. the wave of inward global savings that has permitted the U.S. to enjoy the unique privilege of printing money, without adverse consequence: Until now that is! Debt levels finally matter, it seems, even for the Leviathan.
Vice-President Vance now likens the Reserve Currency to a “parasite” that has eaten away the substance of its ‘host’ – the U.S. economy – by forcing an overvalued dollar.
Just to be clear, President Trump believed there was no choice: Either he could upend the existing paradigm, at the cost of considerable pain for many of those dependent on the financialised system, or he could allow events to wend their way towards an inevitable U.S. economic collapse. Even those who understood the dilemma the U.S. faces, nonetheless have been somewhat shocked by the self-serving brazenness of him simply ‘tariffing the world’.
Trump’s actions, (as many claim), were neither ‘spur of the moment’, nor whimsical. The ‘tariff solution’ had been pre-prepared by his team over recent years, and formed an integral part to a more complex framework – one that complemented the debt-reduction and revenue effects of tariffs, by a programme to coerce the repatriation of vanished manufacturing industry back to America.
Trump’s is a gamble that may, or may not, succeed: It risks a bigger financial crisis, as financial markets are over-leveraged and fragile. But what is clear is that the de-centring of America that will follow from his crude threats and humiliation of world leaders ultimately will cause a counter-reaction both for relations with the U.S., and also in global willingness to continue to hold U.S. assets (such as U.S. Treasuries). China’s defiance of Trump will set a ‘tone’, even for those who lack China’s ‘heft’.
Why then should Trump take such a risk? Because, behind Trump’s boldfaced actions, notes Simplicius, lies a harsh reality facing many MAGA supporters:
“it remains inarguable that the American workforce has been gutted by the triple threat of mass migration; general worker anomie as consequence of cultural decay – and in particular, by the mass alienation and disenfranchisement of conservatively-minded men. These have been strongly contributing factors to the current crisis of doubt about the ability of ‘American manufacturing’ to ever return to a semblance of its previous glory, no matter how big an axe Trump takes to the stricken ‘World Order’”.
Trump is mounting a Revolution in order to invert this reality – an end to the American anomie – by (Trump hopes) bringing back U.S. industry.
There is a current of western public opinion – “by no means limited to intellectu
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
